Chairman's Letter

August 1, 2007

 

On July 30, 2007 the company issued a News Release entitled “Australian Business Humming”. This morning I was greeted with more good news from down under, another order for approximately 5,000 bottles of snoring relief. Sales of 75,000 bottles in just over nine months are a successful start with any product especially in a new market. At current sales, I believe we can project a minimum of $250,000 in yearly sales and to this we can soon add Singapore, Vietnam and Hong Kong from this single distributor. After plodding through a two-year approval process and an expense that can be measured in many thousands of dollars, this success rings especially loud. It provides a compelling reason to increase our efforts in other international markets where we have won Trademark and Brand protection and  that’s exactly what we are doing.

Month’s ago, when we decided to diversify into the financial services industry; the move was met with strong criticism. Today, as a result of this diversification, we have accomplished our two main objectives, reduce stock dilution and self finance our pharmaceutical business. The immediate benefit to shareholders is still hidden in an undervalued share-price. But there will soon come a time when the market will do the math and our share price will rise sharply. The issue is one of supply and demand. Cut off the supply and increase the demand……

The formula is well understood, and while we are to blame for much of the supply problems, needing capital as we have, we should also realize that we would not be here but for the support of our lenders. The demand side of the equation can be fixed by attracting new ownership. The end result of doubling our shareholders, from 3,000 to 6,000 would increase our share price by 7-10 times and, of course, our market value. In short, we can do more for ourselves than we think. It is a goal I profoundly believe in and one that I am convinced will become a reality as we continue to report small, but significant events. It is a very significant reason for the diversification. Are we not better off by helping ourselves?

Yours truly,
Paul B. Kravitz
Chairman/CEO